Oman sets out electricity sector reforms

Changes to Oman’s power sector will affect plants in operation, future projects and the way electricity is supplied to the country’s single buyerChanges to Oman’s power sector will affect plants in operation, future projects and the way electricity is supplied to the country’s single buyer.

The Sur independent power plant in Oman. Some IPP contracts are due to expire soon. (Phoenix Power Oman)

Oman is pressing on with reforms to its electricity sector – which will involve changing its tender model and launching a spot market – to allow power plants that were constructed many years ago to compete for contracts alongside new facilities.

Under the current system, Oman Power and Water Procurement Co. (OPWP) purchases electricity from generators through long-term power-purchase agreements (PPAs) that have just started to expire. When the company needs new generating capacity it invites developers to submit bids to build new plants and supply...

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